SSI vs SSDI - What's the Difference?

Posted: April 19, 2017, 10:11AM

Supplemental Security Income (SSI) provides minimum basic financial assistance to older adults and those with disabilites (regardless of age) with very limited income and resources. Social Security Disability Insurance (SSDI) supports individuals who are disabled and have a qualifying work history, either through their own employment or that of a family member (spouse / parent).

SSI determination is based on age / disability and limited income and resources, but SSDI is based on disability and work credits. In most states, those who qualify for SSI will automatically qualify for Medicaid. The person with SSDI will qualify for Medicare after 24 months of receiving disability payments.

It is possible to have both benefits if you have both limited income / resources and a work history.

Social Security uses a very strict definition of disability that relates to an individual's ability to perform work and the projected length of disability. Medical records are required to support the application, and if the individual has a short-term or partial disability, they are not eligible for SSI or SSDI.

An individual can apply for early Social Security retirement at age 62 but taking early retirement reduces the amount of the benefit for the rest of your life. But, if you get SSDI, that benefit amount would be equal to your full Social Security retirement age benefit.

In most circumstances, if an individual is likely qualified for SSDI, it may be beneficial to apply for that benefit instead of taking early Social Security. One consideration is that if Social Security determines that your disability did not begin until after you received early retirement, you won't receive any retroactive payments.

For more information, you can visit your local Social Security office, call 1 800 772-1213 or visit the Social Security website.

[Source: National Council on Aging blog, Brandy Bauer, April 6, 2017]